Shares of Nike and Adidas scoring at the World Cup
Adidas ( ADSGn.DE ) and Nike ( NKE.N ) are also hoping their shares can score as 32 teams compete for the World Cup in Qatar. With FIFA projecting at least five billion TV viewers, the world’s highest-profile soccer event is a prime opportunity for sportswear manufacturers to market their jerseys, shoes, and other products to teams and individual players.
In 2018, Adidas shares lost 6% during the month-long 2018 World Cup. Germany’s most favored Adidas team was knocked out early. And the FIFA tournament was won by the France Nike team. During the same period, Nike lost 4%. That beat the S&P 500’s one percent gain.
In a quarterly conference call on Nov. 9, Adidas said it expects sales of about 400 euros or $415 million for the World Cup. This amounts to about two percent of additional annual income. Mexico Jersey is one of Adidas’ current best sellers, an Adidas representative said.
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Nike explained the importance of the World Cup on its sales. Adidas did not immediately respond to a request for comment, as soccer-related merchandise accounts for a portion of Nike’s overall business, and the hype surrounding World Cup team jerseys has spurred sales of other merchandise.
Wed Busch analyst Tom Nickic said Nike is supplying jerseys to 13 teams, including Brazil, France, and the United States, at this World Cup, overtaking Adidas as the leader in World Cup jerseys. There are seven teams in Adidas jerseys, including powerhouses Germany, Spain, and Argentina.